Where can I get a loan for a wedding?

Weddings are a massive expense, even when you plan a small and intimate one. The venue, photographer, outfits, jewellery, catering service, etc., add up expenses before you realise. A wedding loan can ease this load to let you make the most of your special day without compromises. Multiple financial institutions offer a loan for marriage at competitive interest rates. Read ahead to learn about them and the key insights to apply confidently.

What is a wedding loan and how does it work?
 

A wedding loan is a type of unsecured personal loan. It is designed to help you manage a range of wedding-related costs. With this loan for a wedding, you can avoid dipping into your growing investments.

Your aspirational purchases for the big day don’t have to wait. Whether it is trendy wedding outfits, momentous jewellery, or dream venues, this loan funds all major expenses swiftly.  

Most loans for marriage come with flexible repayment options and a simplified application process. The loan approval and interest rate depend on your credit health, income stability, and lender policies.

Types of wedding loan providers: banks, NBFCs, fintech
 

If you’re considering a personal loan for a wedding, you’re not short on choices. You can find different categories of lenders with distinct offers. You can pick between them based on the convenience and unique benefits they provide. Here’s a breakdown of the types of wedding loan providers:

· Banks

Banks are the primary wedding loan providers. Due to tight competition, they offer attractive personal loan interest rates and value-added benefits. They are also highly reliable with transparent terms and strong customer support. You can apply with public or private sector banks.

· NBFCs

Non-Banking Financial Companies work much like traditional banks but offer more flexibility and faster approvals. This also means a higher interest rate for added convenience and risk for the bank.  You can apply for a marriage loan with NBFCs if you prefer a simpler application without bank-level verification and requirements.

· Fintech platforms

Fintech lenders have no physical branches. They exist exclusively online, which takes the hassle-free loan application a step ahead. You can consider them if you’re looking for a completely fuss-free personal loan for a wedding within a few clicks.

Digital-first lenders like IDFC FIRST Bank offer the convenience of a fintech with the reliability of a bank. With its FIRSTmoney smart personal loan, you can get up to 10 lakh personal loan for wedding in a 100% digital manner in as little as 30 minutes. You don’t need any paperwork or branch visits, and there are zero foreclosure charges.

Pros & cons of taking a personal loan for a wedding
 

Like any credit option, a personal loan for marriage comes with its share of pros and cons. Understanding both helps you plan your loan application confidently without any unexpected surprises.

Pros:
 

· No collateral requirement

As the personal loan for marriage is unsecured, you need not pledge any gold, property, or investments to borrow.

· Quick access to funds

The nature of most personal loans is instant, whether you apply with a bank, NBFC, or a fintech platform. Hence, funds are disbursed minutes after loan approval.

· Minimal formalities

If you choose to apply online, you are typically required to enter basic details about your age, income, and employment. Similarly, documentation involves video KYC and digital uploads.

· Unrestricted end-use

Unlike home loans, vehicle loans, etc., the wedding loan comes under the personal loan category. Hence, it is not bound by a specific purpose. You can use it for all kinds of expenses.

· Flexible EMI & tenure

You are in control of how you manage your repayment. You get to finalise an EMI that works for you over your preferred period.

· Multiple on-demand loans

Withdraw from your approved loan offer in one-go or as per your need without reapplying from scratch. You pay interest only on the amount you withdraw.

Cons:
 

· Charges

A personal loan for a wedding often comes with a schedule of charges. They include the processing fees, late payment penalty, stamping charges, EMI bounce charges, prepayment penalty, etc.

· Interest costs may add up

If you opt for a longer tenure with an average credit profile, the interest costs add up and make the wedding loan costly.

· Impact on future borrowing

When you apply for a marriage loan, you take on a financial responsibility. It adds to your credit utilisation. If not managed well with on-time repayments, it can affect your credit score and thereby, your future borrowing prospects.

· High credit score requirement

As a wedding loan is unsecured, trust and credibility significantly matter to lenders. They gauge the same through a high credit score (generally above 750).

You can apply for a FIRSTmoney loan for wedding with a CIBIL score of just 710 and above.

· EMI liabilities after the wedding

Availing a wedding credit option means paying EMIs as you start your married life. This can be a con if you don’t plan your repayments before applying for the loan.

IDFC FIRST Bank online wedding loan benefits
 

Choosing the right lender makes the difference between a smooth and cumbersome borrowing experience. If you are considering a reliable loan provider, IDFC FIRST Bank stands out with a host of benefits on its FIRSTmoney wedding loan.

· Fully digital, paperless processing

You can complete the entire journey, from loan application to approval, online with an IDFC FIRST Bank personal loan for a wedding. There is no paperwork involved. You just need to add your PAN and Aadhaar number during the application process and show your original PAN card during the video KYC.

· Attractive interest rate

The interest rate on IDFC FIRST Bank wedding loan starts at just 9.99% p.a. Meeting the eligibility criteria with a strong financial standing and credit profile gives you access to such a low interest rate.

· High loan amount & flexible tenure

You can avail a generous loan amount of up to ₹10 lakhs, which makes it easier to fulfil a wide range of wedding expenses.

· On-demand loan options

You can withdraw the approved loan offer in one go or withdraw it as per your needs.

· No foreclosure charges

FIRSTmoney by IDFC FIRST Bank does not have any foreclosure charges on loans for marriage to encourage going debt-free sooner.

Checklist before applying for a marriage loan
 

Now that you know where to get a loan for marriage and have weighed out the advantages and disadvantages, you might be eager to apply. But first, consider these key aspects to make an informed decision:

· Appropriate loan amount

Choose a loan amount that matches your estimated wedding expenses. Borrowing according to your needs and affordability avoids unnecessary financial burden.

· Eligibility requirements

Every lender has a criterion based on age, income stability, credit score, and existing obligations. Check how you qualify based on these parameters to avoid rejections or a higher interest rate.

· Overall loan cost

While the interest rate is important, it’s only a part of the loan cost. You also want to review the hidden charges like processing fees, late payment penalties, etc., to get a realistic estimate.

· Repayment capability

Borrowing only makes sense if you can handle the EMIs. Thus, it is crucial to understand your repayment capacity before applying. Use an EMI calculator to evaluate how the monthly payment fits alongside your existing liabilities.

· Your credit score

Since your credit score is an important factor influencing your eligibility, it is prudent to check and fix it to get the best marriage financing offer.

· The fine print

All the crucial information about the hidden charges, repayment rules, interest rate calculator, etc., is in the fine print. Thus, reviewing it is important to avoid surprises later.

Final words
 

With the right wedding loan, you can restore the joy and memories that an occasion like marriage brings. Thanks to the availability of different lender categories, you get competitive interest rate offers and benefits that improve your borrowing experience.

Leverage such choices and take the time to compare, understand your repayment comfort and credit profile, and opt for the appropriate loan structure. Such a calculated approach helps you rise above the avoidable cons and capitalise on the pros of a wedding loan.